Correlation Between Live Oak and Invesco Peak
Can any of the company-specific risk be diversified away by investing in both Live Oak and Invesco Peak at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Live Oak and Invesco Peak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Oak Health and Invesco Peak Retirement, you can compare the effects of market volatilities on Live Oak and Invesco Peak and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Live Oak with a short position of Invesco Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Invesco Peak.
Diversification Opportunities for Live Oak and Invesco Peak
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between LIVE and Invesco is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and Invesco Peak Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Peak Retirement and Live Oak is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Live Oak Health are associated (or correlated) with Invesco Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Peak Retirement has no effect on the direction of Live Oak i.e., Live Oak and Invesco Peak go up and down completely randomly.
Pair Corralation between Live Oak and Invesco Peak
Assuming the 90 days horizon Live Oak Health is expected to generate 1.47 times more return on investment than Invesco Peak. However, Live Oak is 1.47 times more volatile than Invesco Peak Retirement. It trades about 0.0 of its potential returns per unit of risk. Invesco Peak Retirement is currently generating about -0.13 per unit of risk. If you would invest 2,181 in Live Oak Health on August 26, 2024 and sell it today you would earn a total of 7.00 from holding Live Oak Health or generate 0.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 8.45% |
| Values | Daily Returns |
Live Oak Health vs. Invesco Peak Retirement
Performance |
| Timeline |
| Live Oak Health |
| Invesco Peak Retirement |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Live Oak and Invesco Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and Invesco Peak
The main advantage of trading using opposite Live Oak and Invesco Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, Invesco Peak can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Invesco Peak will offset losses from the drop in Invesco Peak's long position.| Live Oak vs. Black Oak Emerging | Live Oak vs. Pin Oak Equity | Live Oak vs. Red Oak Technology | Live Oak vs. White Oak Select |
| Invesco Peak vs. Alphacentric Lifesci Healthcare | Invesco Peak vs. Live Oak Health | Invesco Peak vs. Invesco Global Health | Invesco Peak vs. Delaware Healthcare Fund |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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